Punjab Industrial Policy

Updated on June 6, 2022, 5:48 a.m.

The journey of India’s positive growth and development can be sketched from the post-independence period when it adopted the five-year plans of growth. Industries began to slowly develop in Punjab, as it had very few industrial units like the Bricks, Tyre manufacturing units, Iron and Steel and others. The state was importing all the items ranging from pin to the plane in the past.

After the independence, due to the policies of the Government of Punjab, many Cycle making units, Electrical Units, Hosiery Units were established in the state in 50’s. After 1960 many agricultural and farm equipment units began to be set up in the state. From 1970’s the Automobile parts, Rail Coach Factories, Cement Industries, Sports Goods, Steel and Iron industries were established on a large scale.

Following this period, the state saw tremendous growth in terms of economic and social development. There are various pointers like the Balance of Payments and Manufacturing and Service sector growth that can be used as a vital indicator of India’s development after the post-reform period of 1991, when another man from Punjab introducing the budget towards liberalised economy was the finance minister Mr. Manmohan Singh, a product of the London School of Economics.

After 2014, when the Modi Government came to power in the centre the traditional Five-Year Plans were replaced by the Three-Year Plans as part of the 7-year strategy and 15-year vision document. Punjab began to improve under his leadership and recorded the highest economic growth in 2009 during the Recession period.

This state is an important industrial Hub playing a pivotal role in transforming various segments and contributing towards the growth and development of the nation.

The Punjab Industrial Policy introduced by the Government of Punjab is introduced to set up new industries in the state and revive the old and sick industries and make it adaptable to the changing times.

Objectives Of the Punjab Industrial Policy

  • Liberalise the industries sector and improve the productivity of the industries in Punjab.
  • Encouraging the rise of local and international players across all the segments in the state.
  • Create wonderful job opportunities for the rapidly growing labour force in the state.
  • Motivating the differently abled group of Punjab and make them enter into the job market at par with the normal class of people.

Vision Of the Punjab Industrial Policy

Making the state of Punjab as a Powerful, Secure, Industrialised and Knowledge based area, that is very prosperous and expect every citizen of state to have a good and satisfying life.

Mission Of the Punjab Industrial Policy

  • Enhance the growth of the MSME.
  • Inspiring the development of Unicorns in the state.
  • Developing the World Class facilities and Infrastructure.
  • Bringing the collaboration between the State and the Central Government.
  • Making the business activity in Punjab easier without any hurdles.

Features Of the Punjab Industrial Policy

The features of the Punjab Industrial Policy are given below as follows:

  • To establish Skill Centre for each Industrial Cluster in Punjab.
  • Addressing various gaps in the Vocational and Industrial programs.
  • To encourage equal participation of the Public and Private Establishments in Punjab.
  • Providing conducive environment for business creation in the state.
  • To develop the sick units and encourage the employment generation.
  • Creation of the Capital Investment in foreign and domestic segments.
  • Encourage the productivity using the people and carrying out various reforms in the industrial segments.
  • Creation of trading firms, to purchase various products in Textiles, Handicrafts, Furniture from various Small and Medium Industries and sell them to companies in Europe, Middle East, South East Asia and the Americas.
  • Offering the Single Window Clearance to investors in the state and easy access to various details.
  • Providing Cash Based Incentives to the workforce to enhance productivity in the state.
  • Setting up of District Vigilance Committees to eliminate the child labour chaired by the Department of Labour.
  • Creation of new training and Skill Development Programs to empower the differently abled and prevent discrimination in the state.
  • Enhancing the development of various Supply Chains in Punjab and setting new standards, building new infrastructure required to succeed.
  • Conducting many webinars, Seminars and Conferences in the state to boost creation of Industrial units.
  • Improving the access to business development by supporting various Small and Medium Enterprises.
  • Crafting a powerful Credit Business Bureau and Investment Programs to encourage the Equity establishments and Venture Capital firms to set up business in Punjab.
  • Development of huge industrial clusters that can attract and support large scale manufacturers in the state.
  • Encourage the value additions and development in the Industrial segments.
  • Encouraging the Chemical and Light Engineering in Punjab as talented workforce is available.

Industries In Punjab

Punjab is the ideal Industrial Hub in setting up various industries given below as follows:

  • Sports Goods
  • Steel and Iron
  • Diesel Engines
  • Sanitary Items
  • Pharmaceuticals
  • Induction Furnace
  • Rail Coach Factory
  • Garments and Hosiery
  • Auto Part Manufacturing
  • Sewing Machine Industry
  • Textile and Yarns Industry
  • Apparel Manufacturing Units
  • Leather and Rubber Industry
  • Tractor and Farm Equipment’s
  • Packing Metals and Machinery
  • Hand Tools and Machine Tools
  • Food Processing and Foot Wear
  • Blended Yard and Cotton Industries
  • Cycle and Cycle Component Manufacturing

Various Incentives of The Punjab Industrial Policy

There are various incentives available under the Punjab Industrial Policy and it is provided here as follows:

  • 100% exclusion from property tax for next 7 years.
  • 100% exclusion from electricity duty for next 7 years.
  • 100% exclusion from the stamp duty for the next 7 years.
  • Providing the seed grants for all the start-ups to INR 3 Lakhs.
  • The exclusion in electricity duties for the Sick Units is 3 years.
  • Capital subsidies provided to Industrial firms up to INR 1 Crores.
  • Exclusion for Agricultural firms from payment of the 2% Minimum Support Price to various units in the state.
  • Interest Subsidies at 7% per annum for 5 years up to INR 5 Lakhs/ year.
  • For the Sick Units the exclusion from the minimum charges is 3 years.
  • Regular assistance to start ups in Punjab for first 3 years up to INR 5 Lakhs.
  • Encouraging the women entrepreneurs in the state by offering INR 10 Lakhs per year for the next 3 years.
  • Tourism and Hospitality Industry must be exempted from entertainment tax by 100% in Punjab.
  • Reviving the Sick Units in the state by giving exemption from payment of dues and other duties for 3 years.

New Initiatives Under the Punjab Industrial Policy

There are new industrial parks coming up under the Punjab Industrial Policy given below as follows:

  • Setting up Steel plants in Nabha, Faridkot and Patiala.
  • Setting up Research and Development Centre in Ludhiana.
  • Setting up Leather Tanning and Processing Institute at Jalandhar.
  • Major Textile Clusters in Ludhiana, Amritsar, Barnala and Jalandhar.
  • Establishment of the Sports Units like Decathlon, Zara, Puma, Reebok and Nike.
  • Setting up the Textile Park in Ludhiana to improve Textile Industry.
  • Making SAS Nagar near Chandigarh as the Hub of Electronics and Hardware.
  • Setting up Rolling Mills at Mandi Gobindgarh, Phagwara and Mohali.

Agencies To Boost Exports in Punjab

There are various agencies set up to boost the exports in Punjab and they are given below as follows:

  • Apparel Export Promotion Council at Ludhiana.
  • Woollen Export Promotion Council at Ludhiana.
  • Exports Inspection Agency in Ludhiana and Jalandhar.
  • Punjab Small Industries and Export Corporation at Ludhiana.
  • Export Marketing Wing of the Directorate of Industries at Chandigarh.

The Punjab Industrial Policy deals with the integration of Indian with global economy and due to major changes the Small- and Large-Scale Industries in Punjab are adapting and becoming nationally and internationally competitive in nature.

Comments: 0

You need to Login to Post comments.